A change in federal retirement planning rules finalized last month will affect many on Long Island, where higher salaries are more common due to the high cost of living, experts said.

Starting in 2027, the change will generally require Americans 50 and older earning more than $145,000 to use after-tax money for any 401(k) catch-up contributions. In 2025, individuals can set aside up to $7,500 in catch-up contributions to a 401(k), according to the Internal Revenue Service . Some retirement plans could adopt the rule even earlier, in 2026. The IRS has not yet posted catch-up limits for next year.

Final regulations addressing several SECURE 2.0 Act provisions were passed Sept. 15. The change surrounding 401(k) catch-up contributions has both benefits and drawbacks, experts say. Wh

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